Sustainalytics is of the opinion that the Encevo Green Schuldschein Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2017. This assessment is based on the following:
The eligible categories for the use of proceeds - (i) renewable energy projects, (ii) energy transmission, distribution and smart grid projects, (iii) sustainable real estate and (iv) clean transportation solutions are aligned with those recognized by the Green Bond Principles. Sustainalytics considers these categories to contribute to creating environmentally sustainable benefits.
Encevo S.A.’s project evaluation and selection process is aligned with market practice, and includes a designated working group for project evaluation and selection, including representatives from its group companies, including Encevo, Enovos Luxembourg, Creos Luxembourg, and the Group Finance department and CSR team.
Proceeds from the green Schuldschein will be tracked through an internal segregated accounting system. This practice is aligned with market expectations.
Encevo S.A. intends to report allocation of proceeds on an annual basis. Encevo S.A. will also report impact metrics annually, including estimated greenhouse gas emissions reductions and the number of smart grid components installed, which is aligned with market practice.
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Introduction
Luxembourg based Encevo S.A. is the holding company for the Encevo Group (Encevo), whose primary constituents are the energy provider Enovos and the grid operator Creos. The company is the largest energy supplier and grid operator in Luxemburg, has significant business-to-business operations in Germany and is growing in France and Belgium.
Encevo S.A. has developed the Encevo Green Schuldschein Framework (the “framework”) under which it is considering to issue multiple green Schuldscheine and use the proceeds to finance and refinance, in whole or in part, existing and future projects that promote a transition toward a sustainable economy. The framework defines eligibility criteria in four areas: (i) Renewable Energy Projects; (ii) Energy Transmission, Distribution and Smart Grid projects;
(iii) Sustainable Real Estate; and (iv) Clean Transportation Solutions. A list of eligible projects and projected allocations for the 2017 green bond issuance is provided in Appendix 1. Encevo S.A. engaged Sustainalytics to review the Encevo Green Schuldschein Framework and provide a second-party opinion on the alignment of the green Schuldschein with the Green Bond Principles 2017 (the “GBP”), as administered by the International Capital Market Association (the “ICMA”)1, and the framework’s environmental credentials. This framework has been published in a separate document.2
As part of this engagement, Sustainalytics held conversations with various members of Encevo S.A.’s management team to understand the sustainability impact of their business processes and planned use of proceeds, as well as management of proceeds and reporting aspects of Encevo S.A.’s green Schuldschein. Sustainalytics also reviewed relevant public documents and non-public information. This document contains Sustainalytics’ opinion of the Encevo Green Schuldschein and should be read in conjunction with that framework.
1 ICMA’s Green Bond Principles 2017 https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/GreenBondsBrochure-JUNE2017.pdf 2 https://www.encevo.eu/en/accueil/financial-information
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Sustainalytics’ Opinion
Section 1: Sustainalytics’ Opinion on the Encevo Green Schuldschein Framework
Summary
Sustainalytics is of the opinion that the Encevo Green Schuldschein Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles (GBP) 2017. Additionally, Sustainalytics views Encevo S.A.’s green Schuldschein positively. Some of its key strengths are as follows:
• The use of proceeds categories – (i) renewable energy projects, (ii) energy transmission, distribution and
smart grid projects, (iii) sustainable real estate and (iv) clean transportation solutions – are recognized
as impactful by the GBP. Furthermore, Encevo uses credible third-party standards for sustainable real
estate such as the Deutsche Gesellschaft für Nachhaltiges Bauen (DGBN) standard. An in-depth analysis
of the standard can be found in Appendix 2. In addition, the financing of hydroelectric power plants is
limited to units with a capacity less than 25MW.
• Encevo S.A. will allocate the proceeds of the bond to future investments up to five years from the date of
issuance and has informed Sustainalytics that proceeds will refinance projects that have a look-back
period no longer than 2 years.
• Encevo S.A. has a designated working group for project evaluation and selection, including
representatives from its group companies, including Encevo, Enovos Luxembourg, Creos Luxembourg,
the Group Finance department, legal department and the CSR coordinator. This approach is aligned with
market practice. Encevo S.A.’s Board of Directors is involved in approval of all projects above a threshold
of EUR 25 million.
• The allocation of proceeds will be tracked using an internal segregated accounting system. These
practices are aligned with market expectations.
• Encevo S.A. intends to issue allocation of proceeds reporting on its Eligible Green Portfolio annually until
full allocation. Impact reporting will also be issued annually, either on a standalone basis or as part of the
company’s CSR reporting. Possible impact metrics may include the number of smart grid components
installed, the number of households provided with renewable energy, estimated GHG reductions, energy
savings and the certification of green buildings. The company’s reporting practices are aligned with
market practice.
Alignment with Green Bond Principles 2017:
Sustainalytics has determined that the Encevo Green Schuldschein Framework aligns to the four core components of the Green Bond Principles 2017. For detailed information please refer to Appendix 3: Green Bond/Green Bond Programme External Review Form.
Section 2: Sustainability Strategy of Encevo
Contribution of framework to Encevo’s sustainability strategy
Of particular relevance to Encevo S.A.’s Green Schuldschein Framework are the company’s commitments to Sustainable Investment and Environmental Impacts Reduction. Encevo is a strong facilitator to Luxembourg’s energy transition through its position in the Luxembourg market. The company’s investment policy focuses on energy efficient, high performance grids, as well as renewable energy sources, including on-shore wind, small hydropower and photovoltaic systems. Eco-mobility and smart metering are also important elements of the company’s sustainable investment commitment.3 With regards to eco-mobility, Creos, together with three other grid operators, aims to provide infrastructure for 800 public electrical vehicle charging stations in Luxembourg by 2020, whereby Creos is to provide the infrastructure for 750 out of the 800 public electrical vehicle charging stations.4 Furthermore, Creos is working towards the installation of smart metering for Luxembourg’s electricity grid, which requires the deployment of an additional 100,000 smart meters by end of
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2018.5 On the supply side, Enovos has been awarded through a public tender process to supply the public electrical vehicle charging stations with 100% renewable energy.6
Sustainalytics is of the opinion that the planned use of proceeds for the company’s green Schuldschein will contribute to Encevo S.A.’s strategy to invest in technologies that facilitate the energy transition in Luxembourg and the Greater Region.7
Well positioned to address common environmental and social risks associated with the projects
While Sustainalytics is of the opinion that the use of proceeds are impactful, Sustainalytics recognizes that the eligible use of proceeds categories defined in the Encevo Green Schuldschein Framework are exposed to social and environmental risks. These risks relate to biodiversity and community relations for infrastructure and renewable energy projects as well as occupational health and safety for grid maintenance and construction. • Sustainalytics is of the opinion that Encevo S.A. and its operating units are well positioned to mitigate the
health and safety risks related to eligible projects. Occupational health and safety risks are highest in the company’s grid operating activities. Creos Luxembourg manages these risks through its Health, Safety and Environment (HSE) department, which deploys risk identification and assessment techniques, regular employee trainings, and unannounced spot inspections to ensure compliance with safety operating guidelines. Corrective actions are implemented should deficiencies be identified.
• The Luxemburg Ministry for Sustainable Development and Infrastructures (MDDI) sets environmental requirements for the renewable energy projects carried out by Encevo, as a prerequisite for project permits. Measures can include replanting hedges or trees, digging a pond to offset the risk to local biodiversity, and the like. In addition, Creos, the group’s grid operator conducts environmental impact assessments for all projects above 65KW and for projects in green zones. Encevo S.A. also limits financing of hydroelectric projects to production units with a capacity below 25 MW, reducing environmental risks associated with the projects.
• Regarding community engagement, Encevo aims to ensure coordination between municipalities and installers, and participates in meetings with municipalities and their representatives to provide information for all projects Encevo is involved in. For projects which are led by Encevo, the group engages in active dialogue with municipalities. There is no further information on Encevo’s efforts to engage and consult communities during the lifecycle of a process.
Section 3: Impact of Use of Proceeds
All four use of proceeds categories are recognized as impactful by the GBP. Sustainalytics has described where the impact is specifically relevant in the local context below, as it relates to use of proceeds categories (i) renewable energy projects, (ii) energy transmission, distribution and smart grid projects, (iii) sustainable real estate, and (v) clean transportation solutions.
The importance of renewable energy, energy efficiency and electro mobility to Luxembourg’s “Third Industrial Revolution” strategy The Grand Duchy of Luxembourg has initiated a multi-stakeholder policy strategy around the concept of the “Third Industrial Revolution”, aiming to facilitate the country’s transition to a more sustainable and interconnected society.8 Central to this transition is the deployment of information and communication technologies, renewable energies and new modes of transportation that will enable increasingly efficient use of resources.9 The strategy is being deployed in the context of existing national goals for Greenhouse Gas (GHG) emissions, energy efficiency and renewable energy generation. As part of the European Union’s 2020
5 Encevo Annual Report 2017 6 Encevo Annual Report 2017 7 The Greater Region of Luxembourg is a region in Europe constituted by the Saarland, Lorraine, Rhineland-Palatine and Wallonia, in addition to the Grand Duchy of Luxembourg. 8 The official portal of the Grand Duchy of Luxembourg, Third industrial revolution in the Grand Duchy, November 2016: http://www.luxembourg.public.lu/en/actualites/2016/11/15-rifkin/index.html 9National plan for smart, sustainable and inclusive growth Luxembourg 2020: https://rio.jrc.ec.europa.eu/en/library/national-plan-smart-sustainable-and-inclusive-growth-luxembourg-2020-april-2015
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Strategy for smart, sustainable and inclusive growth, Luxembourg is committed to increasing energy efficiency by 20%, increasing the use of renewable energy by 20% by 202010 and aims to have deployed 800 public electric vehicle charging stations by 2020. 11 The country is also party to the European Union’s climate target of reducing GHG emissions by 40% by 2030 against 1990 levels.12 Sustainalytics believes that Encevo’s efforts to limit network losses and further develop the grid in conjunction with the deployment of smart technologies, such as smart meters, will contribute to optimizing electricity delivery and thus contribute to energy efficiency. Furthermore, Encevo’s investments in electro mobility will support Luxembourg’s goal of providing infrastructure for 800 public electric vehicle charging stations that deliver 100% renewable energy. Sustainalytics is of the opinion that Encevo S.A.’s intended use of proceeds will contribute to Luxembourg’s GHG emissions targets, increased use of renewable energy, increase efficiency of the national energy infrastructure and thus, support the Government of Luxembourg’s policy strategy aimed at facilitating a “Third Industrial Revolution.”
Alignment with/contribution to SDGs The Sustainable Development Goals (SDGs) were set in September 2015 and form an agenda for achieving sustainable development by the year 2030. This Schuldschein advances the following SDG goals and targets:
Use of Proceeds Category SDG SDG target
Renewable Energy Projects
7. Affordable and Clean Energy
7.2 By 2030, increase substantially the share of renewable energy in the global energy mix
Energy Transmission, Distribution and Smart Grid projects
7. Affordable and Clean Energy 9. Industry, Innovation and Infrastructure
7.3 By 2030, double the global rate of improvement in energy efficiency
9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities
Sustainable Real Estate
11. Sustainable Cities and Communities
11.3 By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries
Clean Transportation Solutions.
11. Sustainable Cities and Communities
11.2 By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons.
10 European Commission, 2020 climate & energy package: https://ec.europa.eu/clima/policies/strategies/2020_en 11 National plan for smart, sustainable and inclusive growth Luxembourg 2020: https://rio.jrc.ec.europa.eu/en/library/national-plan-smart-sustainable-and-inclusive-growth-luxembourg-2020-april-2015 12 Reuters 2018, EU states call for ambitious truck CO2 emissions targets: https://www.reuters.com/article/us-eu-trucks-emissions/eu-states-call-for-ambitious-truck-co2-emissions-targets-idUSKBN1I80VS
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Conclusion
Luxembourg based Encevo S.A. developed the Encevo Green Schuldschein Framework under which it intends to finance and refinance, existing (look-back period of two years) and future projects that promote a transition towards a sustainable economy. Projects financed fall into the eligible categories of (i) Renewable Energy Projects, (ii) Energy Transmission, Distribution and Smart Grid projects, (iii) Sustainable Real Estate; and (iv) Clean Transportation Solutions. Encevo S.A. includes recognized third party standard DGBN in its eligibility criteria for sustainable real estate. Sustainalytics considers Encevo S.A.’s green Schuldschein Framework to be aligned with and contributing to the group’s overall sustainability strategy and Luxembourg’s sustainability strategy related to GHG emissions reduction, renewable energy and improvements in the efficiency of energy infrastructure. Furthermore, Sustainalytics considers the company’s management of risks related to health and safety, community relations and biodiversity related to eligible projects to be adequate. Encevo S.A.’s processes for project selection, evaluation and management of proceeds and the frequency of allocation reporting are aligned with market practices. Depending on data availability, Encevo S.A. has committed to report on impact metrics such as the number of smart grid components installed, the number of households provided with renewable energy, estimated GHG reductions, energy savings and the certification of green buildings, which is aligned with market practice.
Overall, Sustainalytics is confident that Encevo S.A. is well positioned to issue green Schuldscheine and that the Encevo’s Green Schuldschein Framework is transparent, credible, and in alignment with the four core components of ICMA’s Green Bond Principles 2017.
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Appendices
Appendix 1: Examples of projects per category
Appendix 2: Overview and comparison of the Real Estate Certification Schemes
LEED BREEAM DGNB Background Leadership in Energy
and Environmental Design (LEED) is a US Certification System for residential and commercial buildings used worldwide. LEED was developed by the non-profit U.S. Green Building Council (USGBC) and covers the design, construction, maintenance and operation of buildings.
BREEAM (Building Research Establishment Environmental Assessment Method) was first published by the Building Research Establishment (BRE) in 1990. Based in the UK. Used for new, refurbished and extension of existing buildings.
The German Green Building Certification or DGNB was developed in 2007 by the non-profit German Sustainable Building Council in partnership with the German Federal Ministry of Transport, Building, and Urban Affairs in order to actively encourage sustainable building.
Certification levels
Certified Silver Gold Platinum
Pass Good Very Good Excellent Outstanding
Bronze Silver Gold Platinum
Areas of Assessment: Environmental Project Management
Integrative process, which requires, from the beginning of the design process, the identification and creation of synergies between the various project stakeholders regarding the construction choices and the technical systems.
Management (Man) addresses various aspects: project management, deployment, minimal environmental disturbance worksite and stakeholder engagement.
Technically, any project can be applied anywhere in the world through a tailored process of making appropriate local adaptations on a case-by-case basis.
Areas of Assessment: Environmental Performance of the Building
• Energy and
atmosphere
• Sustainable Sites
• Location and
Transportation
• Materials and
resources
• Water efficiency
• Indoor
environmental
quality
• Energy
• Land Use and Ecology
• Pollution
• Transport
• Materials
• Water
• Waste
• Health and Wellbeing
• Innovation
• Environment
• Economic
• Sociocultural and functional
aspects
• Technology
• Processes
• Site
A. Renewable Energy Projects PV installations in Luxembourg
B. Energy Transmission, Distribution and Smart Grid Projects Smart Metering
C. Sustainable Real Estate Building Bové & Building BettembourgD. Clean Transportation Solutions Electro Mobility (infrastructure for electrical vehicle stations)
Category Project (Examples)
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• Innovation in
Design
• Regional Priority
Requirements Prerequisites (independent of level of certification) + Credits with associated points These points are then added together to obtain the LEED level of certification There are several different rating systems within LEED. Each rating system is designed to apply to a specific sector (e.g. New Construction, Major Renovation, Core and Shell Development, Schools-/Retail-/Healthcare New Construction and Major Renovations, Existing Buildings: Operation and Maintenance).
Prerequisites depending on the levels of certification + Credits with associated points This number of points is
then weighted by item13 and gives a BREEAM level of certification, which is based on the overall score obtained (expressed as a percentage). Majority of BREEAM issues are flexible, meaning that the client can choose which to comply with to build their BREEAM performance score. BREAAM has two stages/ audit reports: a ‘BREEAM Design Stage’ and a ‘Post Construction Stage’, with different assessment criteria.
Percentage-based performance index The total performance index (expressed as a percentage) is calculated by adding the six key areas of assessment. The environmental, economic, socio-cultural and functional aspects and technical quality each account for 22.5% of the total, process accounts for 10% and the site quality is given a separate grade. Depending on the total performance index, a DGNB award will be given to the project, starting from Silver (at least 50%), then Gold (at least 65%) and finally Platinum (at least 80%). Bronze is awarded for already existing buildings and is conferred as the lowest rank with a total performance index of at least 35%.
Performance display
Accreditation LEED AP BD+C LEED AP O+M
BREEAM International Assessor BREEAM AP BREEAM In Use Assessor
DGNB Auditor DGNB Compliance Testing Team DGNB Certification Committee
Qualitative considerations
Widely recognised internationally, and strong assurance of overall quality.
Used in more than 70 countries: Good adaptation to the local normative context. Predominant environmental focus. BREEAM certification is less strict (less minimum thresholds) than HQE and LEED certifications.
DGNB certification is based on current European Union standards and norms and is being recommended by the German Federal Ministry of Transport, Building and Urban Development. DGNB System has partnerships in a number of countries, among which Bulgaria, Denmark, Austria, Thailand and Switzerland.
13 BREEAM weighting: Management 12%, Health and wellbeing 15%, Energy 19%, Transport 8%, Water 6%, Materials 12.5%, Waste 7.5%, Land Use and ecology 10%, Pollution 10% and Innovation 10%. One point scored in the Energy item is therefore worth twice as much in the overall score as one point scored in the Pollution item
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Appendix 3: Green Bond / Green Bond Programme - External Review Form Section 1. Basic Information
Issuer name: Encevo S.A.
Green Bond ISIN or Issuer Green Bond Framework Name, if applicable: [specify as appropriate]
Encevo Green Schuldschein Framework
Review provider’s name: Sustainalytics
Completion date of this form: 04 June 2018
Publication date of review publication: [where appropriate, specify if it is an update and add
reference to earlier relevant review]
Section 2. Review overview
SCOPE OF REVIEW
The following may be used or adapted, where appropriate, to summarise the scope of the review.
The review assessed the following elements and confirmed their alignment with the GBPs:
☒ Use of Proceeds ☒ Process for Project Evaluation and Selection
☒ Management of Proceeds ☒ Reporting
ROLE(S) OF REVIEW PROVIDER
☒ Consultancy (incl. 2nd opinion) ☐ Certification
☐ Verification ☐ Rating
☐ Other (please specify):
Note: In case of multiple reviews / different providers, please provide separate forms for each review.
EXECUTIVE SUMMARY OF REVIEW and/or LINK TO FULL REVIEW (if applicable)
Please refer to Executive Summary above.
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Section 3. Detailed review
Reviewers are encouraged to provide the information below to the extent possible and use the comment section to explain the scope of their review.
1. USE OF PROCEEDS
Overall comment on section (if applicable):
The use of proceeds categories – (i) renewable energy projects, (ii) energy transmission, distribution and smart grid projects, (iii) sustainable real estate and (iv) clean transportation solutions – are recognized as impactful by the GBP. Furthermore, Encevo S.A. uses credible third-party standards for sustainable real estate using the Deutsche Gesellschaft fur Nachhaltiges Bauen (DGBN) standard. Encevo S.A. will allocate the proceeds of the bond to future investments up to five years from the date of issuance and existing projects that have a look-back period of two years.
Use of proceeds categories as per GBP:
☒ Renewable energy ☒ Energy efficiency
☐ Pollution prevention and control ☐ Environmentally sustainable management of living natural resources and land use
☐ Terrestrial and aquatic biodiversity conservation
☒ Clean transportation
☐ Sustainable water and wastewater management
☐ Climate change adaptation
☐ Eco-efficient and/or circular economy adapted products, production technologies and processes
☒ Green buildings
☐ Unknown at issuance but currently expected to conform with GBP categories, or other eligible areas not yet stated in GBPs
☐ Other (please specify):
If applicable please specify the environmental taxonomy, if other than GBPs:
2. PROCESS FOR PROJECT EVALUATION AND SELECTION
Overall comment on section (if applicable):
Encevo S.A. has a designated working group for project evaluation and selection, including representatives from its group companies, including Encevo, Enovos Luxembourg, Creos Luxembourg, the Group Finance department, legal department and the CSR coordinator. This approach is aligned with market practice. Encevo S.A.’s management board is involved in approval of all projects above a threshold of EUR 25 million.
Evaluation and selection
☒ Credentials on the issuer’s environmental sustainability objectives
☒ Documented process to determine that projects fit within defined categories
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☒ Defined and transparent criteria for projects eligible for Green Bond proceeds
☒ Documented process to identify and manage potential ESG risks associated with the project
☒ Summary criteria for project evaluation and selection publicly available
☐ Other (please specify):
Information on Responsibilities and Accountability
☒ Evaluation / Selection criteria subject to external advice or verification
☐ In-house assessment
☐ Other (please specify):
3. MANAGEMENT OF PROCEEDS
Overall comment on section (if applicable):
The allocation of proceeds will be tracked through the use of an internal segregated accounting system. These practices are aligned with market expectations. Encevo S.A. will hold the balance of unallocated proceeds to Eligible Projects and Assets in its internal cash pooling. The unallocated proceeds will be held according to Encevo S.A.’s prudent liquidity management practices (in-line with existing corporate guidelines and policies).
Tracking of proceeds:
☒ Green Bond proceeds segregated or tracked by the issuer in an appropriate manner
☒ Disclosure of intended types of temporary investment instruments for unallocated proceeds
☐ Other (please specify):
Additional disclosure:
☐ Allocations to future investments only ☒ Allocations to both existing and future investments
☐ Allocation to individual disbursements ☐ Allocation to a portfolio of disbursements
☐ Disclosure of portfolio balance of unallocated proceeds
☐ Other (please specify):
4. REPORTING
Overall comment on section (if applicable):
Encevo S.A. intends to issue allocation of proceeds reporting on its Eligible Green Portfolio on an annual basis until full allocation. Impact reporting will also be issued annually, either on a standalone basis or as part of the company’s CSR reporting. Possible impact metrics may include the number of smart grid components
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installed, the number of households provided with renewable energy, estimated GHG reductions, energy savings and the certification of green buildings. The company’s reporting practices are aligned with market practice.
Use of proceeds reporting:
☐ Project-by-project ☐ On a project portfolio basis
☐ Linkage to individual bond(s) ☒ Other (please specify): Eligible category level
Information reported:
☒ Allocated amounts ☒ Green Bond financed share of total investment
☒ Other (please specify): Proportion of new and existing assets and projects
Frequency:
☒ Annual ☐ Semi-annual
☐ Other (please specify):
Impact reporting:
☐ Project-by-project ☐ On a project portfolio basis
☐ Linkage to individual bond(s) ☒ Other (please specify): Eligible category level
Frequency:
☒ Annual ☐ Semi-annual
☐ Other (please specify):
Information reported (expected or ex-post):
☒ GHG Emissions / Savings ☒ Energy Savings
☐ Decrease in water use ☒ Other ESG indicators (please specify): The number of smart grid components installed (smart meters, smart stations etc.) • Number of households provided with access to renewable energy • The certificates regarding energy efficiency of the new buildings
Means of Disclosure
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☐ Information published in financial report ☐ Information published in sustainability report
☒ Information published in ad hoc documents
☐ Other (please specify):
☐ Reporting reviewed (if yes, please specify which parts of the reporting are subject to external review):
Where appropriate, please specify name and date of publication in the useful links section.
USEFUL LINKS (e.g. to review provider methodology or credentials, to issuer’s documentation, etc.)
SPECIFY OTHER EXTERNAL REVIEWS AVAILABLE, IF APPROPRIATE
Type(s) of Review provided:
☐ Consultancy (incl. 2nd opinion) ☐ Certification
☐ Verification / Audit ☐ Rating
☐ Other (please specify):
Review provider(s): Date of publication:
ABOUT ROLE(S) OF REVIEW PROVIDERS AS DEFINED BY THE GBP
i. Consultant Review: An issuer can seek advice from consultants and/or institutions with recognized expertise in environmental sustainability or other aspects of the issuance of a Green Bond, such as the establishment/review of an issuer’s Green Bond framework. “Second Party Opinions” may fall into this category.
ii. Verification: An issuer can have its Green Bond, associated Green Bond framework, or underlying assets independently verified by qualified parties, such as auditors. In contrast to certification, verification may focus on alignment with internal standards or claims made by the issuer. Evaluation of the environmentally sustainable features of underlying assets may be termed verification and may reference external criteria.
iii. Certification: An issuer can have its Green Bond or associated Green Bond framework or Use of Proceeds certified against an external green assessment standard. An assessment standard defines criteria, and alignment with such criteria is tested by qualified third parties / certifiers.
iv. Rating: An issuer can have its Green Bond or associated Green Bond framework rated by qualified third parties, such as specialised research providers or rating agencies. Green Bond ratings are separate from an issuer’s ESG rating as they typically apply to individual securities or Green Bond frameworks / programmes.
Second-Party Opinion Encevo S.A. Green Schuldschein
The Opinion was drawn up with the aim to explain why the analyzed bond is considered sustainable and responsible. Consequently, this Opinion is for information purposes only and Sustainalytics will not accept any form of liability for the substance of the opinion and/or any liability for damage arising from the use of this Opinion and/or the information provided in it.
As the Opinion is based on information made available by the client, Sustainalytics does not warrant that the information presented in this Opinion is complete, accurate or up to date.
Nothing contained in this Opinion shall be construed as to make a representation or warranty, express or implied, regarding the advisability to invest in or include companies in investable universes and/or portfolios. Furthermore, this Opinion shall in no event be interpreted and construed as an assessment of the economic performance and credit worthiness of the bond, nor to have focused on the effective allocation of the funds’ use of proceeds.
The client is fully responsible for certifying and ensuring its commitments` compliance, implementation and monitoring.
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Sustainalytics
Sustainalytics is a leading independent ESG and corporate governance research, ratings and analytics firm that support investors around the world with the development and implementation of responsible investment strategies. With 13 offices globally, the firm partners with institutional investors who integrate ESG information and assessments into their investment processes. Spanning 30 countries, the world’s leading issuers, from multinational corporations to financial institutions to governments, turn to Sustainalytics for second-party opinions on green and sustainable bond frameworks. Sustainalytics has been certified by the Climate Bonds Standard Board as a verifier organization, and supports various stakeholders in the development and verification of their frameworks. Global Capital named Sustainalytics the “Most Impressive Second Party Opinion Provider in 2017. In 2018, the firm was recognized as the “Largest External Reviewer” by the Climate Bonds Initiative as well as Environmental Finance. In addition, Sustainalytics received a Special Mention Sustainable Finance Award in 2018 from The Research Institute for Environmental Finance Japan for its contribution to the growth of the Japanese Green Bond Market.
For more information, visit www.sustainalytics.com
